Top-Down Process

We believe our top-down investment process—starting with macro-level analysis before selecting securities—is a key factor to our investing success.

Our investment process graphic

Portfolio Construction Starts With a Macro Perspective

Our top-down investment process begins with macroeconomic theme development, which helps inform our country, sector/industry and thematic preferences—the main drivers of portfolio returns, in our view. From there, we conduct individual security analysis to select securities that best capture our higher-level preferences, which we believe are likely to outperform peers.

We further believe our process is uniquely suited for managing portfolios and sets us apart from other investment managers—many of whom use “bottom-up” approaches that see key sector or country decisions as byproducts of stock picking. By actively managing these crucial higher-level decisions, we feel our top-down process allows us to exploit a greater opportunity set for generating outperformance than other approaches.

Our Investment Process

Our top-down investment process first establishes outlooks and develops portfolio themes to emphasize parts of the market we believe will perform best, such as different countries and stock market sectors. We then analyze individual securities and select those we believe best capture our high-level views.

Global Macro Driver Analysis

We analyze a wide range of economic, political and sentiment drivers to formulate forecasts and develop portfolio themes.

Prospect List Definition

Based on our macro driver analysis, we identify securities that best capture the high-level themes in our outlook and forecast.

Security Analysis

We conduct fundamental analysis to select securities with strategic attributes that provide competitive advantages over peers.

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Security Selection Process

Our security selection is designed to leverage our top-down process. We directly apply high-level themes from our macro analysis in our security analysis and selection.

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Contact Us

Want to learn more about our institutional investing capabilities?

(800) 550-1071

Current Institutional Clients

(650) 851-3334